In brief: OIG posts 'Most Wanted' list, ResMed loses CEO, Invacare predicts growth, Scooter Store receives financing

Thursday, February 3, 2011

WASHINGTON - The Office of Inspector General (OIG) launched a Most Wanted Health Care Fugitives List last week. The list contains the names, photographs and other identifying information of individuals wanted on charges of healthcare fraud and abuse. The 10 individuals on the list have allegedly cost taxpayers more than $124 million. In all, the OIG seeks more than 170 fugitives. To see the most current list:

ResMed loses CEO to CareFusion

SAN DIEGO - Kieran Gallahue has resigned as CEO and president of ResMed to become CEO of CareFusion, both companies announced last week. At ResMed, Gallahue has been replaced on an interim basis by Dr. Peter Farrell, the company's founder and executive chairman. The company doesn't expect "any material change in strategy or operations as a result of this management change." "Kieran's resignation came as a surprise, but we wish him well," Farrell stated in a release. "During his three years as CEO, he helped build a strong senior management team and I look forward to leading that team as long as is needed." At CareFusion, Gallahue succeeds David Schlotterbeck, who plans to retire later this month. Gallahue grew ResMed's revenue about 500% to $1.2 billion during his tenure, according to CareFusion's release

Invacare predicts more growth in 2011

ELYRIA, Ohio - Invacare increased its organic net sales by 1% in 2010, but next year, thanks to ongoing efforts to become more efficient, the company expects organic net sales to grow 2% to 4%. Overall, Invacare's net sales in 2010 grew by 1.7% to $1.72 billion compared to $1.69 billion in 2009, the company stated last week in its year-end financial report.

Scooter Store receives financing

NEW BRAUNFELS, Texas - The Scooter Store announced last week that it has received financing from a Sun Capital Partners affiliate. The financing "sets the stage for future growth and potential acquisitions," according to a release. CEO Doug Harrison stated: "The Scooter Store is taking aggressive measures to navigate through the current headwinds and ensure that our company is positioned to take advantage of the new market dynamics. We are excited to be in a position to quickly adapt to the most recent Medicare changes and pursue new strategic opportunities that arise from on-going changes." The terms of the deal were not disclosed.

AAHomecare seeks regulatory reform

WASHINGTON - AAHomecare has told Rep. Darrell Issa, R-Calif., about its concerns over onerous HME regulations. Issa is the new chair of the House Oversight and Reform Committee, which has announced plans to examine existing and proposed regulations that negatively impact the economy and jobs. AAHomecare believes that a number of HME-related regulations, created over a 25-year period, should be revamped to improve patient care.

Board seats up for grabs

ARLINGTON, Va. - AAHomecare urges members to attend the association's 2011 Annual Membership Meeting on March 16. The meeting will be held at The Westin Washington, D.C., City Center as part of the association's Washington Legislative Conference. Members will vote on new officers and six at-large directors. The board and its executive committee direct AAHomecare policy and oversee the association's operations.

Pride U gets rechristened

EXETER, Pa. - Pride Mobility Products and Quantum Rehab have formed the 2011 Professional Education Partnership, formerly the Pride U and Quantum University Seminar Tour. The tour was renamed to better reflect the scope of educational services offered to providers and clinicians, Pride stated in a release. The Professional Education Partnership is available at industry trade shows, such as Medtrade and the International Seating Symposium, and makes frequent on-site training visits to rehab facilities and veterans organizations.

OIG finds overpayments for diabetes supplies

NASHVILLE, Tenn. - Cigna Government Services and Palmetto GBA, the Jurisdiction C DME MACs, allowed about $125 million in inappropriate payment for diabetes test strips and lancets in 2007, says the Office of Inspector General (OIG) in a new report. Of that figure, approximately $96.6 million was paid to DME suppliers. The OIG recommends that the contractors implement system edits to identify high-utilization claims and edits to identify claims for strips and lancets that have overlapping service dates for the same beneficiary; enforce Medicare documentation requirements by identifying DME suppliers with a high volume of high utilization claims and perform prepayment reviews of those suppliers.

Catheter coding clarified

INDIANAPOLIS - National Government Services, the Jurisdiction B DME MAC, issued a coding clarification on billing for a urinary intermittent catheter with insertion supplies kit (A4353) in February. The code may be used if either of the following is provided: a sterile intermittent urinary catheter plus a separately packaged sterile kit of insertion/collection supplies, or a single sterile package containing both a catheter and all insertion/collection supplies. Providers are reminded not to bill separately for the catheter and/or the supplies.